Darden Restaurants, Inc.
), the leading casual dining restaurant operators, recently
updated its guidance for the third quarter of fiscal 2013 and
fiscal 2013. The company is scheduled to report its third quarter
earnings on Friday, March 22, 2013.
Third-Quarter Fiscal 2013 Outlook
The company projects its diluted earnings from continuing
operations to be within $1.00 and $1.02 per share in the third
quarter. The Zacks Consensus Estimate for the quarter is $1.01
The company owns and operates restaurant chains, primarily
under the names of Red Lobster, Olive Garden, LongHorn Steakhouse
and The Specialty Restaurant Group. The company expects that the
blended same-store sales (comps) for its three core brands --
Olive Garden, Red Lobster and LongHorn Steakhouse in U.S. - will
be down 4.5%, primarily due to bad weather condition, while the
same for the company's Specialty Restaurant Group will be up
Fiscal 2013 Outlook Updated
Orlando, Florida-based Darden has also reduced its fiscal 2013
sales growth guidance from 7.5%-8.5% to 6%-7% based on a negative
1.5%-2.5% blended same-store sales growth estimate for its three
core brands. However, the sales in the quarter are expected to
get a boost from the company's Yard House USA Inc. acquisition
and new unit openings.
The company now projects that its earnings from continuing
operations will be within $3.06 and $3.22 per share in fiscal
2013, down from the previously provided guidance range of
$3.29-$3.49 per share. The revised earnings guidance includes the
costs associated with the acquisition of Yard House of 9
The company is trying effortlessly to enhance its traffic
growth through improving its menus and other services.
During the second quarter of fiscal 2013, the company posted
earnings from continuing operations of 26 cents per share, lower
than the year-ago earnings of 41 cents per share. Slowdown in
comps in three of Darden's concepts was the key takeaway from
Darden's second quarter earnings results.
Darden currently retains a Zacks Rank #3 (Hold). Another
Red Robin Gourmet Burgers Inc.
) adjusted earnings in the fourth quarter of 2012 were way ahead
of the Zacks Consensus Estimate as well as the year-ago quarter's
earnings. Red Robin Gourmet currently carries a Zacks Rank#1
Other restaurant companies like
Krispy Kreme Doughnuts, Inc.
Burger King Worldwide, Inc.
) both with a Zacks Rank #2 (Buy) are expected to perform well,
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